Article

The U.S. Secretary has determined that processed critical minerals and their derivative products (PCMDPs) are essential to national security and various industries, including defense and critical infrastructure.

The U.S. is heavily reliant on foreign sources for these minerals, with 100% net-import reliance on 12 critical minerals and over 50% reliance on 29 others as of 2024. Despite being the second-largest producer of unprocessed rare earth oxides, the U.S. lacks sufficient domestic processing capacity.

This reliance creates vulnerabilities, such as supply chain disruptions and economic instability. The Secretary has noted a decline in U.S. production of critical minerals, while demand continues to rise due to increasing military threats and growth in high-tech industries. Recommendations include negotiating supply agreements with foreign nations and considering import restrictions if these agreements are not reached promptly.